Skip to main content
Log in

Internet-Based Entrepreneurial Ventures: An Empirical Investigation of Startup Business Strategies on Firm Performance from the MENA region

  • Original Research
  • Published:
Global Journal of Flexible Systems Management Aims and scope Submit manuscript

Abstract

This study examines the possible impact of Generic Competitive Strategies, Cost Leadership, Differentiation, and Focus, on the financial and non-financial Performance of Internet-based entrepreneurial ventures in the MENA region. Descriptive analytical methodology and exploratory research design, consisting of qualitative then quantitative approaches, were utilized. After qualitative semi-structured interviews, a five-point Likert scale questionnaire was sent to Internet-based entrepreneurial ventures. SPSS was used to describe and analyse the data of 201 filtered and screened questionnaires. The results indicate that all of the examined generic competitive strategies have positive direct impacts on the performance of Internet-based entrepreneurial ventures. Differentiation strategies have the highest impact on the performance of Internet entrepreneurial ventures in MENA region, followed by Cost Leadership, then Focus strategies. This paper concludes with a discussion of the managerial implications of these findings, future research recommendations, and limitations of the study.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abderrahman, H., Dalal, R., & Badr, L. (2016). Kamal reggad and e-commerce entrepreneurship in Morocco. Emerald Emerging Markets Case Studies, 6(3), 1–23.

    Google Scholar 

  • Abou-Moghli, A., & Al-Abdallah, G. (2018). Evaluating the association between corporate entrepreneurship and firm performance. International Journal of Entrepreneurship, 22(4), 1–10.

    Google Scholar 

  • Acharya, S. (2019). Beyond learning outcomes: Impact of organizational flexibility on strategic performance measures of commercial e-learning providers. Global Journal of Flexible Systems Management, 20, 31–41.

    Article  Google Scholar 

  • Agrawal, U., Mangla, A., & Sagar, M. (2016). Company-cause-customer: Interaction architecture. Global Journal of Flexible Systems Management, 17, 307–319.

    Article  Google Scholar 

  • Al-Abdallah, G., & Abou-Moghli, A. (2012). The effect of promotional mix on Internet adoption in Jordanian small and medium enterprises. European Scientific Journal, 8(12), 96–112.

    Google Scholar 

  • Al-Abdallah, G. (2013). The effect of customer-company relationship on Internet adoption in Jordanian small and medium enterprises. Journal of Economics and Behavioral Studies, 5(4), 192–199.

    Article  Google Scholar 

  • Al-Abdallah, G. (2015). The impact of Internet marketing research on achieving competitive advantage. International Journal of Arts and Sciences, 8(1), 619–627.

    Google Scholar 

  • Al-Abdallah, G., Abou-Moghli, A., & Al-Thani, A. (2018). An examination of the e-commerce technology drivers in the real estate industry. Problems and Perspectives in Management, 16(4), 468–481.

    Article  Google Scholar 

  • Al-Abdallah, G., Al-Khawaldeh, K., & Al-Hadid, A. (2014). Internet usage and traditional distribution channels: The moderating effect of the firm’s size in Jordan. International Business Research, 7(3), 81–90.

    Article  Google Scholar 

  • Allen, R., & Helms, M. (2006). Linking strategic practices and organizational performance to Porter’s generic strategies. Business Process Management Journal, 12(4), 433–454.

    Article  Google Scholar 

  • Bertels, H. (2019). Startup on a budget: Winning new customers without breaking the bank. The CASE Journal, 15(2), 109–130.

    Article  Google Scholar 

  • Bhide, A. (1992). Bootstrap finance: The art of start-ups. Harvard Business Review, 70(6), 109–117.

    Google Scholar 

  • Birasnav, M., Chaudhary, R., & Scillitoe, J. (2019). Integration of social capital and organizational learning theories to improve operational performance. Global Journal of Flexible Systems Management, 20(2), 141–155.

    Article  Google Scholar 

  • Block, J., Kohn, K., Miller, D., & Ullrich, K. (2015). Necessity entrepreneurship and competitive strategy. Small Business Economics, 44(1), 37–54.

    Article  Google Scholar 

  • Bremser, W. G., & Chung, Q. (2005). A Framework for performance measurement in the e-business environment. Electronic Commerce Research and Applications, 4, 395–412.

    Article  Google Scholar 

  • Brinckmann, J., Villanueva, J., Grichnick, D., & Singh, L. (2019). Sources of strategic flexibility in new ventures: An analysis of the role of resource leveraging practices. Strategic Entrepreneurship Journal, Vo., 13(2), 154–178.

    Article  Google Scholar 

  • Carrier, C., Raymond, L., & Eltaief, A. (2004). Cyberentrepreneurship: A multiple case study. International Journal of Entrepreneurial Behaviour and Research, 10(5), 349–363.

    Article  Google Scholar 

  • Cerny, C. A., & Kaiser, H. F. (1977). A study of a measure of sampling adequacy for factor-analytic correlation matrices. Multivariate Behavioral Research, 12(1), 43–47.

    Article  Google Scholar 

  • Chaffey, D. (2015). Digital business and e-commerce management: Strategy, implementation and practice (6th ed.). Harlow: Pearson.

    Google Scholar 

  • Chen, S. (2005). Strategic management of e-business (2nd ed.). Chichester: Wiley.

    Google Scholar 

  • Ching, K. (2019). A test of strategic optimality theory: Evidence from the social networking industry. Innovation: Organization and Management, 21(2), 359–378.

    Article  Google Scholar 

  • Chul, K. M., Chang, E. K., & Kichan, N. (2004). An examination of Porter’s competitive strategies in electronic virtual markets: A comparison of two on-line business models. International Journal of Electronic Commerce, 9(1), 163–180.

    Article  Google Scholar 

  • Creswell, J. W., Plano Clark, V. L., Gutmann, M., & Hanson, W. (2003). Advanced mixed methods research designs. In A. Tashakkori & C. Teddlie (Eds.), Handbook of mixed methods in social and behavioral research (pp. 209–240). Thousand Oaks, CA: Sage.

    Google Scholar 

  • Cristina, M., & Suzana, D. (2016). The role of entrepreneurship in stimulating economic growth. A view from the top’, annals of ’constantin brancusi. University of Targu-Jiu. Economy Series, 5, 161–166.

    Google Scholar 

  • Deepali, J. S. K., & Chaudhary, H. (2017). Quest for effective mentors: A way of mentoring potential entrepreneurs successfully. Global Journal of Flexible Systems Management, 18, 99–109.

    Article  Google Scholar 

  • DeLone, W. H., & McLean, E. R. (2004). Measuring e-Commerce success: Applying the DeLone & McLean information systems success model. International Journal of Electronic Commerce, 9(1), 31–47.

    Article  Google Scholar 

  • Dinesh, K. K., & Sushil. (2019). Strategic innovation factors in startups: results of a cross-case analysis of Indian startups. Journal for Global Business Advancement, 12(3), 449–470.

    Article  Google Scholar 

  • Elias, A. A. (2019). Strategy development through stakeholder involvement: A New Zealand study. Global Journal of Flexible Systems Management, 20(4), 313–322.

    Article  Google Scholar 

  • Evans, S., & Bahrami, H. (2020). Super-flexibility in practice: Insights from a crisis. Global Journal of Flexible Systems Management, 21(3), 207–214.

    Article  Google Scholar 

  • Fan, W., & Yan, Z. (2010). Factors affecting response rates of the web survey: A systematic review. Computers in Human Behavior, 26, 132–139.

    Article  Google Scholar 

  • George, D., & Mallery, M. (2010). SPSS for windows step by step: A simple guide and reference, 17.0 update (10th ed.). Boston: Pearson.

    Google Scholar 

  • Guo, L., Wei, Y. S., Sharma, R., & Rong, K. (2017). Investigating e-business models’ value retention for start-ups: The moderating role of venture capital investment intensity. International Journal of Production Economics, 186, 33–45.

    Article  Google Scholar 

  • Gupta, A. K., & Gupta, N. (2019). Innovation and culture as a dynamic capability for firm performance: A study from emerging markets. Global Journal of Flexible Systems Management, 20, 323–336.

    Article  Google Scholar 

  • Hinton, M., & Barnes, D. (2009). Discovering effective performance measurement for e-business. International Journal of Productivity and Performance Management, 58(4), 329–345.

    Article  Google Scholar 

  • Hirakubo, N., & Friedman, H. H. (2002). Dot-bombs: Lessons from the dot-com debacle. Journal of Internet Commerce, 1(2), 89–102.

    Article  Google Scholar 

  • Huang, J., Jiang, X., & Tang, Q. (2009). An E-Commerce performance assessment model: Its development and an initial test on e-commerce applications in the retail sector of China. Information and Management, 46, 100–108.

    Article  Google Scholar 

  • Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regner, P. (2016). Exploring strategy: Text and cases (11th ed.). Boston: Pearson.

    Google Scholar 

  • Karagozoglu, N., & Lindell, M. (2004). Electronic commerce strategy, operations, and performance in small and medium-sized enterprises. Journal of Small Business and Enterprise Development, 11(3), 290–301.

    Article  Google Scholar 

  • Karlof, B., & Loevingsson, F. (2005). Porter’s generic strategies, A to Z of management concepts & models (pp. 272–277). London: Thorogood Publishing.

    Google Scholar 

  • KEMP, S. (2017). The incredible growth of the Internet over the past five years, The Insider. Retrieved 25 August, 2018, from: https://thenextweb.com/insider/.

  • Kiprop, V. (2019). What Are The MENA Countries? WorldAtlas. Retrieved 22 Febraury, 2019, from https://worldatlas.com/articles/what-are-the-mena-countries.html.

  • Kim, E., Nam, D., & Stimpert, J. (2004a). The applicability of Porter’s generic strategies in the digital age: Assumptions, conjectures, and suggestions. Journal of Management-Lubbock Then College Station Texas Then Stamford Connecticut, 5, 569–589.

    Google Scholar 

  • Kim, E., Nam, D., & Stimpert, J. (2004b). Testing the applicability of Porter’s generic strategies in the digital age: A study of Korean cyber malls. Journal of Business Strategies, 21(1), 19–45.

    Article  Google Scholar 

  • King, H., Jr., Barber, R., & Morgenthaler, D. (2007). The importance of entrepreneurship to economic growth, job creation and wealth creation. Canada-United States Law Journal, 33, 7–46.

    Google Scholar 

  • Kulatunga, D. (2008). Electronic commerce strategies, generic strategies, and firm performance: A study of small and medium enterprises in Aichi, Japan. Japanese Journal of Administrative Science, 21(1), 27–46.

    Article  Google Scholar 

  • Laher, S. (2010). Using exploratory factor analysis in personality research: Best-practice recommendations. SA Journal of Industrial Psychology, 36(1), 1–7.

    Article  Google Scholar 

  • Lawless, M. W., Bergh, D. D., & Wilsted, W. D. (1989). Performance variations among strategic group members: An examination of individual firm capability. Journal of Management, 15(4), 649–691.

    Article  Google Scholar 

  • Leeflang, P., Verhoef, P., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European Management Journal, 32, 1–12.

    Article  Google Scholar 

  • Li, B., & Li, J. (2008). Achieving superior financial performance in China: Differentiation, cost leadership, or both? Journal of International Marketing, 16, 1–22.

    Article  Google Scholar 

  • Maddala, G. S., & Lahiri, K. (2009). Introduction to econometrics (4th ed.). Chichester: John.

    Google Scholar 

  • MAGNiTT official website. (2020). http://www.magnitt.com.

  • Manly, B.F., & Alberto, J.A.N. (2016). Multivariate statistical methods: a primer. Chapman and Hall/CRC.

  • van Marco, G., Roy, T., & Niels, B. (2006). Success and Risk Factors in The Pre-Startup Phase. Small Business Economics, Vo., 26(4), 319–335.

    Article  Google Scholar 

  • Melnik, A. N., Ermolaev, K. A., & Kuzmin, M. S. (2019). Mechanism for adjustment of the companies innovative activity control indicators to their strategic development goals. Global Journal of Flexible Systems Management, 20(3), 189–218.

    Article  Google Scholar 

  • Miller, D. (1988). Relating Porter’s business strategies to environment and structure: Analysis and performance implications. Academy of Management Journal, 31(2), 280–308.

    Article  Google Scholar 

  • Nandakumar, M., Ghobadian, A., & O’Regan, N. (2010). Business-level strategy and performance: The moderating effects of environment and structure. Management Decision, 48(6), 907–939.

    Article  Google Scholar 

  • Nguyen, N. T. (2020). Performance evaluation in strategic alliances: A case of Vietnamese construction industry. Global Journal of Flexible Systems Management, 21(1), 85–99.

    Article  Google Scholar 

  • Norris, A. (2014). Startups and older firms: Which is more responsive to local economic changes? Retrieved 23 June, 2018, from: https://www.bls.gov/opub/mlr/2014/beyond-bls/startups-and-older-firms.htm.

  • Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.

    Google Scholar 

  • Orendorff, A. (2017). Global ecommerce: Statistics and international growth trends. Global ecommerce. Retrieved 25 August, 2018, from https://www.shopify.com/enterprise/global-ecommerce-statistics.

  • Ormanidhi, O., & Stringa, O. (2008). Porter’s model of generic competitive strategies. Business Economics, 43(3), 55–64.

    Google Scholar 

  • Parnell, J. (2010). Strategic clarity, business strategy and performance. Journal of Strategy and Management, 3(4), 304–324.

    Article  Google Scholar 

  • Parnell, J. (2006). Generic strategies after two decades: A reconceptualization of competitive strategy. Management Decision, 44(8), 1139–1154.

    Article  Google Scholar 

  • Perera, S., Harrison, G., & Poole, M. (1997). Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: A research note. Accounting, Organizations and Society, 22(6), 557–572.

    Article  Google Scholar 

  • Pertusa-Ortega, E., Claver-Cortés, E., & Molina-Azorín, J. (2008). ’Strategy, structure, environment and performance in Spanish firms. EuroMed Journal of Business, 2, 223.

    Article  Google Scholar 

  • Porter, M. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.

    Google Scholar 

  • Porter, M. (2001). Strategy and the Internet. Harvard Business Review, 79(3), 62–78.

    Google Scholar 

  • Ryu, E. (2011). Effects of skewness and kurtosis on normal-theory based maximum likelihood test statistic in multilevel structural equation modeling. Behavior Research Methods, 43(4), 1066–1074.

    Article  Google Scholar 

  • Saleh, A., & Bista, K. (2017). Examining factors impacting online survey response rates in educational research: Perceptions of graduate students. Journal of MultiDisciplinary Evaluation, 13(29), 63.

    Google Scholar 

  • Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. Hoboken: Wiley.

    Google Scholar 

  • Shalender, K., & Yadav, R. K. (2019). Strategic flexibility, manager personality, and firm performance: The case of Indian Automobile Industry. Global Journal of Flexible Systems Management, 20(1), 77–90.

    Article  Google Scholar 

  • Shukla, S. K., Sushil, & Sharma, M. K., (2019). Managerial paradox toward flexibility: Emergent views using thematic analysis of literature. Global Journal of Flexible Systems Management, 20(4), 349–370.

    Article  Google Scholar 

  • Srivastava, A. K. (2014). Act for effective strategy execution: Mediating role of adapt. Global Journal of Flexible Systems Management, 15, 305–312.

    Article  Google Scholar 

  • Su, Z., Sun, W., & Guo, H. (2017). Exploration and firm performance: The moderating impact of competitive strategy. British Journal of Management, 28(3), 357–371.

    Article  Google Scholar 

  • Sushil. (2009). The dual perspective of performance. Global Journal of Flexible Systems Management, 10(4), 3.

    Article  Google Scholar 

  • Sushil. (2012a). Business planning: The flowing stream strategy way. Global Journal of Flexible Systems Management, 13(4), 177–178.

    Article  Google Scholar 

  • Sushil. (2012b). Making flowing stream strategy work. Global Journal of Flexible Systems Management, 13(1), 25–40.

    Article  Google Scholar 

  • Sydney, F. (2001). Internet startups: So why can’t they win? Journal of Business Strategy, 22, 16.

    Article  Google Scholar 

  • Sylvie, F., Judith, J., & Caroline, C. (2002). Identifying success factors for rapid growth in SME E-commerce. Small Business Economics, No., 1, 51.

    Google Scholar 

  • Tarabasz, A. (2013). The reevaluation of communication in customer approach towards marketing 4.0. Contemporary Management Quarterly, Vol. 12, No. 4, pp. 124–134. Retrieved 15 November, 2017.

  • Torrance, H. (2012). Triangulation, respondent validation, and democratic participation in mixed methods research. Journal of mixed methods research, 6(2), 111–123.

    Article  Google Scholar 

  • Torres, P. M., Gomes, C. F., & Yasin, M. M. (2013). E-business performance measurement: A user-level approach. Competition Forum, 11(1), 32–37.

    Google Scholar 

  • Torres, PM., Lisboa, JV., & Yasin, MM. (2014). E-commerce strategies and corporate performance: An empirical investigation. Competitiveness Review, Vol. 24, No. 5, pp. 463–481. Retrieved 8 Febraury, 2018, from http://www.emeraldinsight.com.liverpool.idm.oclc.org/loi/cr.

  • Tülüce., N.S., & Yurtkur., A.K. (2015) 'Term of strategic entrepreneurship and schumpeter's creative destruction theory Procedia—social and behavioral sciences, vol. 207, In: 11th international strategic management conference, pp. 720–728. Retrieved 23 June, 2018, from: https://doi.org/10.1016/j.sbspro.2015.10.146.

  • United States Department of Labor. (2018). Table 8. Private sector establishment births and deaths, seasonally adjusted. Retrieved 25 May, 2018, from https://www.bls.gov/news.release/cewbd.t08.htm.

  • Verhees, F. J., & Meulenberg, M. T. (2004). Market orientation, innovativeness, product innovation, and performance in small firms. Journal of Small Business Management, 42(2), 134–154.

    Article  Google Scholar 

  • Yadav, N., & Sushil. (2014). Total interpretive structural modelling (TISM) of strategic performance management for Indian telecom service providers. International Journal of Productivity and Performance Management, 63(4), 421–445.

    Article  Google Scholar 

  • Zaheer, H., Breyer, Y., Dumay, J., & Enjeti, M. (2019). Straight from the horse’s mouth: Founders’ perspectives on achieving “traction” in digital start-ups. Computers in Human Behavior, 95, 262–274.

    Article  Google Scholar 

  • Zhuang, Y., & Lederer, A. (2003) ‘Generic strategies for business-to-consumer E-commerce. In: AMCIS 2003 proceedings, December 2003. 25. Retrieved 9 June, 2018, from: http://aisel.aisnet.org/amcis2003/25.

  • Zhou, K. Z., & Wu, F. (2010). Technological capability, strategic flexibility, and product innovation. Strategic Management Journal, 31(5), 547–561.

    Google Scholar 

  • Zott, C., & Amit, R. (2008). The fit between product market strategy and business model: Implications for firm performance. Strategic Management Journal, 29(1), 1–26.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ghaith M. Al-Abdallah.

Ethics declarations

Conflict of interest

The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Al-Abdallah, G.M., Fraser, K.E. & Albarq, A.N. Internet-Based Entrepreneurial Ventures: An Empirical Investigation of Startup Business Strategies on Firm Performance from the MENA region. Glob J Flex Syst Manag 22, 29–41 (2021). https://doi.org/10.1007/s40171-020-00256-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40171-020-00256-4

Keywords

Navigation